preferred successor in congress. china answered gold, but lack, white, and not enough green -- black, white, and not enough green may upset the plans. all that and more. closed down by two. a pretty rough start for the year. it has fallen six percent now. and awest point in two half years. the shares are down once again. the protests over concerns within the country. jakarta down.

china down by two percent. it was the 25th month in a row of expansion. 62 .7. that is a concern. a strong yen really weighing on those stocks. singapore straits are seeing slight gains. hyland falling. it is down so far this year down. -- thailand it is down so far this year alone 66%. toit has been a rocky start 2014. the question is what is to come for the rest of the year. what is the answer? >> we have only had three days.

gauges in hong kong, a guarantee these things will change. point, 10% gains. we have dropped three percent. you could say they are thinking a 20 or 30% rally for 2014. the index is down five percent this year. forecasts,oss these i gets -- i guess it is a common message that it will be better. and it is likely to rear its ugly head, which could put more pressure on the supply of cash.

relating to following house prices, rising bond yields. stress, anygns of pain that is unexpected. something actually could happen. >> there is a lot of optimism about these reforms. is driving part of this bullish story. another is the valuation. how kong is very cheap. does that compare to the rest of the world? >> third cheap. -- dirt cheap. valuations in hong kong are the cheapest in the world among all national markets. other sectors are getting a boost from the reforms in china. if you compare that to southeast

asia, clearly much cheaper. this is recently looking away from southeast asia. kong toompare hong northeast asia it is apples to apples. to looking at europe, how does this compare with hong kong? also much cheaper. that is the euro stoxx 50 index. between sectors it will help. investor, it is pretty good, especially if the prediction comes through. >> a potential upside. >> let's get back to the markets. are getting your

attention. >> they are missing estimates. it is half of what was forecast. the campaign is not working either. some sun reports tomorrow. currently -- sam sun tomorrow. shares up ahead of those earnings. worries the investment bank and south korea was actually raising the forecast. see their operating profits rising 35%. benefit.oing to the stocks we are following htc land -- kangwon land. bc requested trading halt.

the sides were quite a ways apart. they are apparently bridging the difference. point fiverom one percent. the lowest level since mid- december. they are currently on a trading halt. bit are said to have made a right here in hong kong. people familiar with the matter, offered lessc has than the book value. the hong kong bank has a market value of 4.6 oh yen dollars. $4.6 billion. the appeal is what everybody really wants to know. e?at does ocbc se

>> the bank is attractive has been looking to diversify outside of its home country. two thirds of its current revenue comes from singapore. they are looking to expand outside of that area. hang ishong kong wing attractive. according to an analyst, she says its presence across southern china's river delta makes it a better target than any of these smaller banks. in is theing hang is looking tobc expand at home. f not coming to the rescue. estimateshone missing

, making half of expectations. robert downeyt of junior tended to sprinkle some hollywood stardust, but it has little impact. of bitcoin is now back up above $1000. zynga saidost when they would start accepting them for games like "farmville" two. >> honda sales rising nearly two shy of, but it is expectations. december sales climbing 11%. nissan doing well.

again the company missed estimates. a quick check on those carmakers. we are seeing the kleins in honda -- declined in honda. >> the rush for reform has left some in the slow lane. a special report coming up. >> after the break, the cio tells us why there are plenty of reasons to be cheerful in the year >> foreign investors will be

keeping a close eye. investors need to see

how, especially starting with the banking system. the first question they ask you is how is china going to fix the goingms, and how are they to fix shadow banking explosion issues. i think that is the first ring we should be at -- the first thing we should be addressing. >> we also discussed the problem in india. positive about the problem. >> if you look at the new sparkedemerging, it has congress into doing something. we have seen a fairly rapid year. i am reasonably positive whichever party comes into power the momentum going forward is positive. is going to be much

more focused on policy reforms and issues getting us nowhere, so i am reasonably positive on that. >> that was the word from asia. >> asia-pacific is having a rough day with its first day of losses. also pointing to the slow growth in china. happy new year. tell us what are the themes. three days of declines, so where do we go from here? >> i think we might take a breather in the first quarter. we saw data improved. as the chinese government youlance is the economy, see tightening of credit.

>> i noticed you are part of the herd. you are overweight china for things like gaming and the internet. the valuations are pretty high for gaming and the internet. >> i would say it is a bit expensive, but the perspective that e-commerce is a real thing and is going to make a takengful shift, so if you a water term view i think it still looks reasonable. >> there are 900 million people not on the internet so far. >> i think you have got to take a longer-term view. is priced in, which is where these stocks take a breather. about the election

year. what is your indian view? has been all over the place. what about equities? they are not going to be fixed because of the political machinations. is running to a record high but has stabilized to a more manageable level per month, which gets balanced, so the currency is stable. once the currency is stable we don't care what is happening. you see whatever the public opinions are. a credible opportunity for the leading opposition party to come make a difference. be in quality companies like exporters.

like itts seem to better than congress, but it is not looking that clear-cut this election. come asmergence has something which can impact. markets are also taking a breather. clearections are far from at this point. one must understand if you take a long-term view, it raises the political parties. that is what you want in an emerging market. you want party of governance. you want in best rents -- investment, and hopefully that should lead to good gdp for investors. >> stick around. >> coming up china rolls out more measures to tackle worsening pollution.

we talk about how the company's clear the air. this is asia edge.

>> just a month away from winter olympics in russia. beijing is making a joint bid for the event, but this could be

met for a frosty reception. >> you need to drive at least four hours to get to where they want to hold the outdoor event eight years from now. in aroblem is beijing sits bone dry basin. these are some of the tallest hills. it is already january. there is no snow, just the great wall of china. ,aking matters more challenging i thought we were getting away from this. china would undoubtably throw billions at cleaning up, including a high-speed rail link to the slopes, but there is still work to be done.

mile to the mountain offers few clues to the winter resort. this is january. it is all man-made snow. ready to go. this is one of the newer ski resorts in the area. 22 lifts are planned serving 87 trails. challenging, but skiing is a relatively new sport for the chinese. chance. should have a there is not a single slope that conforms, but there are a couple of resorts built nearby.

it may not be known for its snow, but it is known for its bitter winds. icy. also extremely what do you think? world-class? >> not at all. i think if you were going to try theave an olympics here, amenities -- >> they are building that down the road. >> when you get there. i am not sure when. >> about eight years. >> one thing you need for olympics is good snow. this is a good place to come, a good place for the family. i don't think it's ready for the olympics just yet. >> aging is competing against beijing iscities, --

competing against five other cities, but the odds are long. they have the will and the wallet to host the games. maybe just not the weather. as steve mentioned, pollution is one of the key issues that could affect china's bid at the olympics. thatng us, joseph, we know coal powered energy in china really produces the most aleutian in china. what are the fixes? >> a couple of things. you need to change the fuel mix. wind,d more nuclear, more more solar, but it is not going to happen overnight. you need to build that, and it will change. >> when you talk about changes you are talking about solar energy, wind powered energy, and

nuclear energy as well. how are things coming into play? how quickly can they come into play for china? >> nuclear is the big ticket item. wind and solar help, but the big-ticket item takes a while to build. for gas you need gas. trying to get more gas into china, but that takes time. nuclear power, five years building, three years planning. 2020 we will see some major changes. new leadership. there are all these new policies coming into play, yet it looks like the problems are getting worse. why is there such a disconnect where the policy is in place but the problem is getting worse? >> that is a good question. in 2008.ly started it takes time to execute.

you have seen some positive benefits already. wind power generation for example has gone through the roof. nothingone from almost to almost 75 gigawatts. ,> we saw clean energy players and they actually performed the best of 2013. why do they perform the best? what happened, and can they do that for 2014? >> very good question. because them double policies were coming through, and that means earnings were becoming much better. now the high devaluations were double what they were. they used to be undervalued. it is a big question. can they repeat it in 2014? it really depends how quickly

they are going to spend. >> thank you so much for joining us. looking forward to the afternoon business in tokyo. a decline of two percent in the morning session. speaking on the rest of the asia-pacific region and also hong kong and shanghai. at pmi number coming in 50.9. and a number below 15 is contraction, above is expansion.

>> in bangkok protesters want to bring the city to a standstill. stocks falling even more in china. -- live in mumbai. first let's get a look at the markets. the license company seeing gains.

one of the investment banks upgrading the forecast. seeing stock machines. the taiwanese smartphone maker. they are actually half of what was forecast. well off the grid in those regards. they came out with robert downey junior not paying off at all. two and aling nearly half percent. trading day was a rocky day. how is the second session working out?

>> there are declines i can tell you. japan following the most in september. all of this from last year. see everyart you can single industry group is seeing a decline. industrials are really struggling. the last nine days of trading in 2013. they were up every single day. besthai indexes the reforming of the major indexes in the world. stocks, financials, health care, all of these. the biggest decline or in

consumer finance. you have retail stocks falling by four percent. the biggest decline in retail since last year. concern.real in april it will affect spending. that a strong and impacting. few minutesst a away from the start of trading in india. the indian prime minister confirming he will be stepping down after a decade in power. the hang seng also. >> i am not going to be a

minister for the prime if they were to come back into power. has outstanding credentials to be nominated as the presidential candidate. i hope you will make that decision at an appropriate time. >> let's go straight to mumbai. down?s this gone it is surprising that he is going to step down after the election. >> he said three very clear things. out as is ruling himself a candidate. believes him say he gandhi has outstanding to be the prime

minister. took theister singh opportunity to attack the opposition party. the political message coming out of the press conference was quite clear. the stage is set for another battle in the general elections of 2014. parties traditionally go into elections and not personalities. >> i am going to ask you a bit. what about the legacy he leaves behind? minister heinance has a lot to be applauded about, but in recent years it hasn't

looked that great, has it? wax you are right. the prime minister has come across as extremely weak. he has faced allegations of corruption, low economic growth. whathave months to explain went wrong. his leadership comes with scrutiny. prime ministerd has been the reformer. he pretty much was the key architect of the program since we have seen the economic story of india unfold. does justice to the legacy of the prime minister. he hopedry candid. history would judge him kindly. it remains to be seen whether his legacy will be that of a

reformer. gandhi. talk about raul we have heard he has excellent credentials. his surname is gandhi. let's be serious. what about compared to the other candidate? what about the third new force in indian politics as well? gandhi's biggest entry into politics has been his surname. if recent elections are anything congress wiped out four states. he has not led by the front. who has been shy in taking responsibility of

government. he is really not a match at this point. what markets were expecting is some sort of governance that will allow them to go ahead and invest money and kickstart the economy. gandhi does not seem to be the person who reports with these ine on any of creating an investment program. he comes across as someone who is tried and tested. coming from the new political force is a party that came out less than two weeks ago. it has come across after a series of protests on the road. seen whether be they are able to convert the promises they made into actual policies.

is a force restricted to new delhi so far. it remains to be seen if we have the impact across the country. as though it much before a matter of dates he takes up the mantle. >> electionlot. also an issue in thailand. antigovernment protesters have stepped up their campaign to shut down the thai capital bangkok. they say they will bring the city to a halt in hope of forcing the prime minister from office. is live.-- zeb the latest demonstrations, how big were they, and what is that going to lead to a week from now?

scene.me paint the january 13 at 9 a.m., that is when antigovernment protesters claimed they would paralyze government blocking offices. it is anyone's guess whether they will be successful, but they are in preparation mode. they are already marching to various points in the city. yesterday thousands of protesters made their way on the seventh on a route through bangkok, and they say they will not stop until the prime minister is removed from office. that is their key demand. they also want the february 2 election to be delayed, something the election committee said on friday will not happen. government making backup plans now. bangkok city government making contingency plans to avoid what could be a traffic nightmare and certainly the unknown, to avoid

violence, which we know has plagued these protests for many years. that is the question, isn't it? it is more antigovernment, but elections they have not won since the 1990's. what are they really fighting against? >> there is a deep lack of taste amongst these antigovernment protests for the family. let's not forget the prime minister's brother was the former premier. he is living in self-induced exile in dubai. they not only want you lock -- yingluck removed from office. they want her property is

seized. it is a complicated matter. democratic party, the antigovernment protesters, these are the ones who want to see changes. the so-called red shirts said they will take to the streets as well next week. you have got a situation where violence could take place. the government warns of road third-party groups. tonight is said to start moving military and tanks into the area. they claim it is for the parade on january 18, although critics say it is in preparation for a coup. >> thank you so much. myanmar's gradual reforms

have brought some progress, but as the country strides into the future, parts of society are being left behind. >> the new year is bringing changes. main form ofce the transport, are now finding it to deal with change. >> it's not an easy job because i don't have a normal income. sometimes i have more. sometimes less. mostly i only have enough to live for a day. than beforeifficult because we have to drive the rickshaw like normal cars, but we have to survive so we have to risk doing that. >> myanmar's economy grew 6.8% this year, among one of the fastest in southeast asia.

it trickles down to rickshaw drivers. him he can barely take home one dollar a day after feeding his family and paying the rent on his rickshaw. that is on a good day. the alternative is even less appealing. >> if there was no more rickshaw work, i would do hard labor on construction sites for three dollars or four dollars a day. >> for now local still depend on , but as streets become wider and traffic denser, the rickshaw bell will be run less for a future generation. >> japan was asia's best- performing market last year, but japanese shares are still a buy. we discuss all that and more

when asia edge returns.

>> welcome back. it is kind of a t good start to 2014. s&p kicked things off. do you think the nikkei 225 can see again? do think the record gains can continue until 2014? for japan. to come you want to see corporate increase. you need to see a followthrough of earnings. now you need to see the earnings

. it will be muted for these markets. >> you need the earnings to come through in china as well. at japan it is disappointing. when two american corporate starts bending as well in a big way? >> initially markets got excited. you have all of these wealth products and rebalance the economy. not sustainable. this has to come down. happens, as the capital

intensity gets reduced, what is is that gives some pressure on china. that shows the transition which may seem rough at times. this,you look at corporate spending is bound to happen. it will be one of the top three. u.s. corporate spending. >> corporate bending has been lacking in japan. they have some of the worst allocators of capital. bestould you seay are the

allocators? goodt. is a relatively allocator of capital. atside that, if you look some of the cyclical factors, because of the very nature of these it remains poor. >> that is the problem. we talk about some of these industrials. all of these markets no longer everything else looks expensive besides hong kong. bu't hong kong a compelling y?

>> we have done well. placee good insurance in in hong kong. we would not be overweight towards real estate. hong kong is more like new york. overweight we are china hong kong it is largely hong kong. curb pute government those luxury developers at bay? when do you see a turnaround with the developer? >> i think real estate has been under pressure. , andve been underweight these services keep growing every year.

that is where the large majority is. are you overweight, and where are you underweight? are you overweight in thailand? valuations. at in july andack august. we were always consistently , and our view was the number is down to come down. have large overweight at this point. there is very little trade growth. as you get clarity you look to is clearly messy. in the next six months we should

get numbers. >> the bank halted in hong kong 11:39. starting at latest out of that story. >> panic attacks. >> are you having one right now? falling stocks mean arise two trips to the hospital.

>> don't have a heart attack. let's hope 2014 contains more gains than declines. a spikeselloff see

in sickness. >> hospitals. >> i love that piece of paper. it is fantastic. i love your work. survey done in march of last year. the professors at the university of san diego in colorado. they are looking at the impact of stocks to go down. the equation is as stocks fall one and a half percent emissions dropped by a quarter of a percent. back in 87 the stocks fell 20%. lastis a massive concern

year when stocks ended up higher. if not, watch out for hospitals. careat is the worst health ? obviously panic attacks, heart attacks, heart conditions. we had a heart issue. there was a significant correlation between stock market attacks,e and heart panic attacks, cholesterol. >> all because of declining markets? >> everyone feels a little more stress. >> money can't buy happiness, and focusing too much on money. >> money gives you options. >> you can be miserable in

comfort. >> let's try to be stress-free and 2014. worry, be happy. we will be back >> here's johnny.

>> from the moment he stepped on stage until the moment he said , the king of late-night was johnny carson.